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2010-2011-2012-2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
PARLIAMENTARY SERVICE AMENDMENT (PARLIAMENTARY BUDGET
OFFICER) BILL 2013
SUPPLEMENTARY EXPLANATORY MEMORANDUM
Amendments to be moved on behalf of the Government
(Circulated by the authority of the
Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)
Table of contents
Glossary .................................................................................................. 1
General outline and financial impact ....................................................... 3
Chapter 1 Explanation of amendments .......................................... 5
Index ..................................................................................................... 13
Glossary
The following abbreviations and acronyms are used throughout this
explanatory memorandum.
Abbreviation Definition
ATO Australian Taxation Office
Bill Parliamentary Service Amendment
(Parliamentary Budget Officer) Bill 2013
Board Security Management Board established by
section 65A of the PS Act
Officer Parliamentary Budget Officer
PBO Parliamentary Budget Office
Presiding Officers The President of the Senate and the Speaker
of the House of Representatives
PS Act Parliamentary Service Act 1999
1
General outline and financial impact
Outline of amendments
The Parliamentary Service Amendment (Parliamentary Budget Officer)
Bill 2013 (the Bill) would require the Parliamentary Budget Officer (the
Officer) to prepare a report on the costs of political parties' election
commitments no later than 30 days after a government forms following a
general election.
These amendments clarify how the Officer is to determine the election
commitments to be included in the post-election report. Currently, the
Bill provides that the designated Parliamentary parties will provide a list
to the Officer for inclusion in the report. These amendments provide that
the Officer will determine which election commitments will be included
in the post-election report, having regard to the parties' lists and public
announcements. This is to ensure that, even if no list or an incomplete list
is received by the Officer, the Officer can still prepare a comprehensive
post-election report. Additionally, these amendments ensure that the
Australian Taxation Office (ATO) can only provide de-identified taxpayer
information to the Officer.
At the request of the Presiding Officers, the Government is also moving
an amendment relating to the Officer's membership of the Security
Management Board.
Date of effect: No specific commencement arrangements apply to these
amendments to the Bill. The measures in the Bill are to commence on the
day after the Act receives the Royal Assent.
Financial impact: Nil. These amendments have no significant financial
impact on Commonwealth expenditure or revenue.
Compliance cost impact: Nil.
3
Chapter 1
Explanation of amendments
Outline of chapter
1.1 These amendments clarify how the Officer is to determine the
election commitments to be included in the post-election report. The
Officer is to include in the post-election report all election commitments
which he or she reasonably believes, in his or her best professional
judgement, would have a material impact on the Commonwealth budget
sector and Commonwealth general government sector fiscal estimates for
the current financial year and the following three financial years.
1.2 The Officer is to prepare a list of such election commitments
which he or she considers, in his or her best professional judgement, is
comprehensive. Designated Parliamentary parties will be consulted in the
preparation of the Officer's list.
1.3 The amendments restructure what was to be section 64MA into
two new sections:
· section 64MA will set out the Officer's obligation to prepare
the report, prepare lists of election commitments to be costed,
and consult with designated Parliamentary parties; and
· section 64MAA will detail the content of the post-election
report.
1.4 Further, these amendments ensure that the ATO cannot disclose
particular identifying information about taxpayers to the Officer.
1.5 The amendments also remove the requirement for the Officer to
be a member of the Security Management Board.
Detailed explanation of amendments
Definition of `election commitment'
1.6 The amendments introduce a definition of `election
commitment' into the Parliamentary Service Act 1999 (the PS Act). An
election commitment, in relation to a general election, is a policy that a
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Parliamentary Service Amendment (Parliamentary Budget Officer) Bill 2013
Parliamentary party has publicly announced it intends to seek to have
implemented after the election. [Amendment (1), schedule 1, item 2A, section 7]
1.7 This reflects the provision in the Bill as introduced, where
designated Parliamentary parties would give the Officer a list of the
policies that the party has publicly announced it intends to seek to have
implemented after the election (see proposed subsection 64MA(3) at
item 10 of Schedule 1 to the Bill). The inclusion of a definition reflects
that the amendments require the Officer to decide what constitutes an
election commitment, which he or she will do by reference to this
definition.
1.8 The definition is a broad one, capturing any policy that a
Parliamentary party has publicly announced it intends to seek to have
implemented after the election. This could be an announcement of a
policy the party intends to introduce if it forms government following the
general election. Or it could be a policy the party intends to introduce
legislation to implement, or (if the party is not in government) to lobby the
government to introduce. To be an election commitment, the policy must
be publicly announced, and it must be the party's announced intention to
seek to have it implemented after the election.
Election commitments to be included in the report
1.9 The amendments provide that the Officer's post-election report
must set out, for each designated Parliamentary party:
· costings of the election commitments that the Officer
reasonably believes, in his or her best professional
judgement, would have a material impact on the
Commonwealth budget sector and Commonwealth general
government sector fiscal estimates for the current financial
year and the following three financial years; and
· the total combined impact those election commitments would
have on the Commonwealth budget sector and
Commonwealth general government sector fiscal estimates
for the current financial year and the following three
financial years. [Amendments (3) and (4), schedule 1, item 10,
subsection 64MA(1)]
1.10 As introduced, the Bill required the post-election report to
include costings of the policies the designated Parliamentary parties
included on a list provided to the Officer. The amendments mean that the
parties' lists are not determinative of which election commitments are
included in the post-election report. Rather, all election commitments that
the Officer reasonably believes would have a material impact on the
6
Explanation of amendments
Commonwealth budget in the current financial year and following three
years would be included in the post-election report.
1.11 The post-election report is not required to include policies that
are not election commitments (that is, that do not meet the new definition
in section 7), or election commitments that the Officer does not
reasonably believe would have a material impact on the Commonwealth
budget in the current financial year or the following three financial years.
The Officer's list of election commitments
1.12 The amendments introduce a process for the Officer to
determine the list of election commitments to be included in the
post-election report.
1.13 Within three days after the end of the caretaker period for a
general election, the Officer must prepare -- for each designated
Parliamentary party -- a list of all of that party's election commitments
that the Officer, in his or her best professional judgement, reasonably
believes would have a material impact on the Commonwealth budget
sector and Commonwealth general government sector fiscal estimates for
the current financial year and the following three financial years.
[Amendment (6), schedule 1, item 10, subsection 64MA(5)]
1.14 In preparing these lists, the Officer is to have regard to the lists
received (if any) from the designated Parliamentary parties by 5 pm on the
day before polling day. The Officer is also to have regard to any public
announcements by the parties before or during the caretaker period for the
general election. However, the Officer is not required to include any of
the policies on the parties' lists or any public announcement in the
Officer's list. [Amendment (6), schedule 1, item 10, subsection 64MA(6)]
1.15 This means it is a matter for the Officer's best professional
judgement what is included on each list of a designated Parliamentary
party's election commitments. A policy need not be included in the
Officer's list simply because it was on a party's list, or because it was
publicly announced by a party. To be included on the Officer's list, the
policy must meet the definition of `election commitment', and the Officer
must reasonably believe that the policy will have a material impact on the
Commonwealth budget.
Consultation on the list
1.16 After the Officer has prepared his or her list (but in any event,
no later than three days after the end of the caretaker period), the Officer
must give each designated Parliamentary party the Officer's list of that
party's election commitments. If the Officer's list differs from a list
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Parliamentary Service Amendment (Parliamentary Budget Officer) Bill 2013
provided by the party by 5 pm on the day before polling day, the Officer
must give the party a statement explaining the reasons for the difference.
[Amendment (6), schedule 1, item 10, subsection 64MA(7)]
1.17 Designated Parliamentary parties then have an opportunity to
comment on the Officer's list of their election commitments. Within three
days after receiving the Officer's list, a designated Parliamentary party
must give the Officer comments on that list. [Amendment (6), schedule 1,
item 10, subsection 64MA(8)]
1.18 The Officer may take account of any comments received by
designated Parliamentary parties in response to the Officer's list.
However, the Officer is not required to take account of these comments.
[Amendment (7), schedule 1, item 10, subsection 64MAA(2)] The decision about
which election commitments to include in the post-election report is for
the Officer to make, not the designated Parliamentary parties. The Officer
will make this decision according to his or her best professional
judgement. [Amendment (6), schedule 1, item 10, subsection 64MA(5)]
Requirements for the post-election report of election commitments
1.19 Requirements for the post-election report of election
commitments are set out in section 64MAA. The Officer must comply
with this section in preparing the report. [Amendment (7), schedule 1, item 10,
subsection 64MAA(1)]
Designated Parliamentary parties' comments
1.20 The post-election report must set out any comments a designated
Parliamentary party gave to the Officer concerning the Officer's list of
that party's election commitments. If a designated Parliamentary party
did not give the Officer any comments, the post-election report must
include a statement to that effect. [Amendment (7), schedule 1, item 10,
subsection 64MAA(3)]
Election commitments not to be included in the report
1.21 The post-election report must include costings of the election
commitments of the designated Parliamentary parties that the Officer
reasonably believes would have a material impact on the Commonwealth
budget. [Amendments (3) and (4), schedule 1, item 10, subsection 64MA(1)]
However, the report must not include costings of election commitments
other than those in the Officer's list provided to the designated
Parliamentary parties, or referred to in comments given by the parties to
the Officer in response to the Officer's list. [Amendment (7), schedule 1,
item 10, paragraph 64MAA(4)(a)]
8
Explanation of amendments
1.22 This is to ensure that the list of election commitments to be
included in the report is settled as soon as possible after the caretaker
period ends. It means that, after the designated Parliamentary parties have
had an opportunity to comment on the Officer's list, there is no further
scope to influence the Officer's decision-making about the election
commitments to be costed. It also means that, after commenting on the
Officer's list, designated Parliamentary parties will know the full list of its
election commitments that may be included in the report; the Officer will
not be able to add new election commitments to the list after that time.
Reasons for including an election commitment
1.23 The post-election report must, for each election commitment that
is costed in the report, explain the reason the Officer has decided it is an
election commitment he or she reasonably believes would have a material
impact on the Commonwealth budget, and indicate the source of the
information from which the Officer identified the election commitment.
[Amendment (7), schedule 1, item 10, paragraph 64MAA(4)(b)]
1.24 This is intended to make it clear why each election commitment
is included in the report. This will be particularly important in cases
where the post-election report includes an election commitment that was
not included on a list provided by a designated Parliamentary party. The
Officer must explain why the policy meets the definition of an `election
commitment', and why he or she reasonably believes it would have a
material impact on the Commonwealth budget.
1.25 The report would note the source of the election commitment.
For example, the report might note that a particular election commitment
was included in a list of policies provided by the designated Parliamentary
party by 5 pm on the day before polling day, that it was identified by the
party in providing comments on the Officer's list, that it was announced in
a particular media release or was published on a particular website.
Provision of de-identified information
1.26 Division 355 of Schedule 1 to the Taxation Administration
Act 1953 makes it an offence for a taxation officer to make a record of, or
disclose, protected information -- this being information that is acquired
by virtue of being a taxation officer and which identifies or is reasonably
capable of identifying a taxpayer.
1.27 The Bill as introduced included an exception to this offence
provision, by allowing taxation officers (effectively, the ATO) to provide
the Officer with otherwise protected information, so long as this
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Parliamentary Service Amendment (Parliamentary Budget Officer) Bill 2013
information is provided for the purpose of enabling the Officer to perform
or exercise his or her statutory functions or powers under the PS Act.
1.28 However, the Officer does not need access to specific
identifying information about taxpayers in order to properly conduct
costings on political party proposals, or to carry out any of his or her other
statutory responsibilities.
1.29 The amendments ensure that any protected information which
the ATO may provide to the Officer must not include specific identifying
information. Namely, this information must not contain an entity's name,
contact details or ABN. [Amendment (13)]
Consequential amendments
1.30 The amendments introduce a definition of `election
commitment', and clarify that election commitments which the Officer
reasonably believes would have a material impact on the budget are to be
included in the post-election report. The amendments restructure
proposed section 64MA. A number of consequential amendments are
made to the Bill to reflect the main amendments and the restructuring.
1.31 The amendments replace `publicly announced policies' with
`election commitments' in paragraph 64E(1)(da), to reflect the new
function of the Officer to prepare the post-election report on election
commitments under section 64MA. [Amendment (2)]
1.32 The amendments change Note 1 to the new
subsection 64MA(1), reflecting that the requirements for the report are
now included in section 64MAA. [Amendment (5)]
1.33 The Bill as introduced included provisions that the post-election
report does not have to include commercially confidential information or
information that could prejudice national security. It also included a
provision that the Officer may reflect in the report that he or she did not
have sufficient information, or sufficient time, to assess the cost of an
election commitment. These provisions are moved into the new
section 64MAA, updated to reflect the definition of `election
commitment'. [Amendment (7), schedule 1, item 10, subsections 64MAA(5) and (6)]
1.34 The Bill allows the Officer to ask authorised members of
designated Parliamentary parties, and certain third parties, for information
about publicly announced policies. The amendments change the
references to publicly announced policies to `election commitments',
10
Explanation of amendments
reflecting the introduction of the definition and the contents of the
post-election report. [Amendment (8)]
1.35 The Bill requires that costings prepared under the Charter of
Budget Honesty Act 1998 be provided to the Officer after the caretaker
period ends, and allows the Officer to use these costings in the
post-election report if they are costings of policies the designated
Parliamentary party had included on its list to the Officer. The
amendments change the reference to the party's list, so that the Officer
may use these costings if they are costings of election commitments to be
included in the report. [Amendment (9), schedule 1, item 10, subsection 64MB(7)]
1.36 The amendments change the reference to the post-election report
in subsection 64MC(1) to reflect the restructuring of section 64MA and
the precise requirement to prepare the report. [Amendment (10)]
1.37 The Bill required the Officer to provide a confidential copy of
the relevant part of the post-election report to each designated
Parliamentary party that provided a list of policies to the Officer. As the
post-election report will include costings of election commitments of all
designated Parliamentary parties -- not just those that provided lists to the
Officer -- the Officer will provide a confidential copy of the relevant part
of the report to each designated Parliamentary party. This provision is
also amended to reflect the definition of `election commitment'.
[Amendment (11), schedule 1, item 10, subsection 64MC(2)]
Amendment relating to the Security Management Board
1.38 Section 65A of the PS Act establishes a Security Management
Board (the Board) comprising representatives from each of the four
Parliamentary departments. The PS Act provides that the function of the
Board is to provide advice as required to the Presiding Officers on
security policy, and the management of security measures, for Parliament
House.
1.39 Currently, subsection 65A(2) of the PS Act provides that the
Board consists of:
· the Secretary of the Department of Parliamentary Services, or
an SES employee of that department nominated by the
Presiding Officers in writing;
· an SES employee of the Department of the Senate nominated
by the President of the Senate;
11
Parliamentary Service Amendment (Parliamentary Budget Officer) Bill 2013
· an SES employee of the Department of the House of
Representatives nominated by the Speaker of the House of
Representatives; and
· the Officer, or an SES employee of the Parliamentary Budget
Office (PBO) nominated by the Presiding Officers in writing.
1.40 The amendments repeal paragraph 65A(2)(d) of the PS Act,
removing the requirement for the Officer (or SES employee of the PBO)
to be a member of the Board. [Amendment (12), schedule 2, item 1B] The
amendments also amend paragraph 65A(2)(c), reflecting that the
subsection now ends with that paragraph. [Amendment (12), schedule 2,
item 1A]
1.41 As set out in paragraphs 1.2 and 1.3 of the Explanatory
Memorandum to the Bill, the purpose of the PBO is to inform the
Parliament by providing independent and non-partisan analysis of the
budget cycle, fiscal policy and the financial implications of proposals.
Unlike the other three Parliamentary departments, it has no role in the
management of security for the Parliamentary precincts.
1.42 This amendment ensures that section 65A reflects the roles of
the Parliamentary departments in relation to security policy, and the
management of security measures, for Parliament House.
Paragraph 65A(3)(a) provides that the Board may, with the written
approval of the Presiding Officers, invite other members of the
Parliamentary Service to attend its meetings. This provision enables the
Officer, or his or her representative, to be involved in the work of the
Board to the extent necessary.
12
Index
Bill reference Paragraph
number
Amendment (1), schedule 1, item 2A, section 7 1.6
Amendment (2) 1.31
Amendments (3) and (4), schedule 1, item 10, subsection 64MA(1) 1.9, 1.21
Amendment (5) 1.32
Amendment (6), schedule 1, item 10, subsection 64MA(5) 1.13, 1.18
Amendment (6), schedule 1, item 10, subsection 64MA(6) 1.14
Amendment (6), schedule 1, item 10, subsection 64MA(7) 1.16
Amendment (6), schedule 1, item 10, subsection 64MA(8) 1.17
Amendment (7), schedule 1, item 10, subsection 64MAA(1) 1.19
Amendment (7), schedule 1, item 10, subsection 64MAA(2) 1.18
Amendment (7), schedule 1, item 10, subsection 64MAA(3) 1.20
Amendment (7), schedule 1, item 10, paragraph 64MAA(4)(a) 1.21
Amendment (7), schedule 1, item 10, paragraph 64MAA(4)(b) 1.23
Amendment (7), schedule 1, item 10, subsections 64MAA(5) and (6) 1.33
Amendment (8) 1.34
Amendment (9), schedule 1, item 10, subsection 64MB(7) 1.35
Amendment (10) 1.36
Amendment (11), schedule 1, item 10, subsection 64MC(2) 1.37
Amendment (12), schedule 2, item 1A 1.40
Amendment (12), schedule 2, item 1B 1.40
Amendment (13) 1.29
13
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